IFHA Conference Feature

IFHA CONFERENCE FEATURE

OCTOBER 8, 2013

Super Group 1s, medication, Bolger & Nicholson

By TDN staff and Michele MacDonald

Creation of a series of "super Group 1 races" -- the very best events around

the globe -- and a continuing campaign for the cessation of medication use,

particularly in all black-type events, will be pillars of the International

Federation of Horseracing Authorities' plans for the future.

During the 47th conference of the IFHA, held Monday in Paris, there also was

discussion about whether any graded or black-type race run in a jurisdiction

that allows medication use should be given a different designation than the same

types of races run in areas that do not allow drugs. Such a move clearly could

negatively impact the perceived market value of American horses globally.

"I can guarantee you that the fight against medication will remain as my

absolute priority," said IFHA Chairman Louis Romanet in closing the conference.

"We must eradicate it in all graded and black-type races, which are the races

that make the breed worldwide."

Romanet declared that "you can rely on me to put permanent pressure" on The

Jockey Club and Breeders' Cup Ltd. to bring an end to drug use in the United

States, and he applauded "the progress made in South America, where Lasix is now

prohibited in all Grade 1 and 2 races and totally prohibited in all graded and

black-type races in a country like Brazil."

Brian Kavanagh, IFHA Vice Chairman and Chief Executive of Horse Racing

Ireland, revealed the hopes for a new framework of super Group 1 races in a

report in which he also addressed medication use in stakes events.

"One of the most frequent comments you hear is that more liberal medication

rules weaken the breed, yet there is no reflection of this in sales catalogs or

in a horse's pedigree. Hopefully, progress can be made on more uniform

medication rules worldwide or else some designator may have to be attached to

races to reflect which rules a race was run under," Kavanagh said.

Under a relatively new structure for the IFHA, Kavanagh has been leading the

organization's work to review quality control of graded and group stakes

worldwide. He said IFHA leaders understand the complexity of the situation with

medication use in the United States and are trying to work with American leaders

"in a collegiate fashion."

However, he said if such efforts do not lead to a change in American racing,

"I do think it's important to make the point that races are run under different

medication regimes but carry the same grading and details in the sales catalog.

Long-term, I don't think that's right."

As to the super Group 1 race series idea, Kavanagh said discussions among

racing leaders are ongoing and that initiatives might be decided upon by the

Asian Racing Conference next May. Regional series might be the most simple way

to start, he noted, suggesting that the championship events of Ireland, Great

Britain and France, if linked together for additional status and incentives,

would produce even more excitement for owners and fans alike.

"We're very keen to talk to the British and the French authorities about the

possibility of creating a year-end series in Europe. Within a five-week period

now in Europe, we have 18 Group 1 races spread over three meetings: two days

each in Ireland, Britain and France. So again, when you look at promoting

them as a series or linking them together, you get good possibilities. We'll

take that up in Europe. It's slightly harder to go on a global basis, so it's

better to start these things regionally first," Kavanagh said.

Devising a global framework of Super Group 1 races could be the natural

evolution of the IFHA's dedication to evaluating the quality of races and horses

with its World Rankings and associated handicapping analyses.

"When you look at it, there is quite a standard rating for Group 3s and Group

2s, but there is no ceiling on Group 1s. You can have a Group 1 rated at 115 or

you can have a Group 1 rated at 125 or 126. They are very different races, so as

things evolve and we look at a more global standard, I think we are going to

have to look at whether there is an elite series of races," Kavanagh said. "The

consequence of (the IFHA's rankings and graded stakes quality control program)

is that now maybe we have to start challenging some of the things we've taken

for granted in the past."

In 2012, the three highest ranking races in the world were the Champion S.

(Eng-G1) at Ascot, the Breeders' Cup Mile (G1) at Santa Anita Park and the Prix

de l'Arc de Triomphe (Fr-G1) at Longchamp, with average ratings of runners at

125.42, 123.83 and 123.75, respectively, he said.

Kavanagh also reported that the global number of graded and black-type races

has increased by 6.5 percent and 5 percent, respectively, over the last 30

years, even as the foal crops and number of flat races have decreased by 9

percent and 3.7 percent. Last year, there were 1,882 graded races and 4,900

black-type races out of a total of 150,076 flat races run worldwide.

"The statistics would suggest that there are not too many graded races in the

world, but that the number of non-graded black-type races is double the number

of graded races and this probably needs consideration," Kavanagh said. "Against

a backdrop of declining foal population and total number of flat races, it would

be difficult to sustain any further increases in the worldwide black-type

program."

In another benchmark regarding quality control of races, a South American

grading committee has been established and will meet for the first time in

November, meaning that all of the world's major racing regions will have such a

system for racing, he said. The Americas were the focal point of more news when

it was announced that racing and horsemen's groups representing South America,

North America and the Caribbean region will join together in a new Pan American

Racing Association, with an initial conference set for June 3-6, 2015, in

conjunction with the Belmont S. (G1) in New York.

Much of the IFHA meeting was devoted to discussions about marketing during a

panel moderated by Jockey Club President and IFHA Vice Chairman James Gagliano. 

Churchill Downs Chief Operating Officer Bill Carstanjen used the forum to reveal

that the track plans to install the largest plasma television screen in American

sports by April 2014 at a cost of $12-million. The screen, which he said will be

bigger than three National Basketball Association courts, will be erected on the

backstretch and face the grandstand so fans can witness a variety of racing and

social activities shown via video from all around the sprawling complex like

never before.

"This is what it takes to inspire your customer to walk away and say, 'I

haven't seen anything like that before.' That is what we're shooting for,"

Carstanjen said. "You have to invest to get fans -- you can call that

marketing."

Perhaps the most promising and compelling presentation delivered during the

conference came from Mike Mulvihill, senior vice president of programming and

research for Fox Sports TV, which earlier this year signed a deal with The

Jockey Club that will have Fox return to broadcasting racing in the United

States in 2014 after a hiatus of more than a decade. The new Fox coverage, which

will encompass 10 key races for older horses, will begin in February.

Counter to conventional thinking, Mulvihill said Fox has identified

Thoroughbred racing as a prime means for advertisers to reach consumers,

particularly affluent ones. While racing has been overlooked by many since its

audience tends to be older -- and advertisers tend to seek young or wealthy

people who consume more and thus are more valuable viewers -- Mulvihill noted

that Neilsen Media Research has found that elite-level racing, such as the

Kentucky Derby (G1), draws a very high percentage of homes with earnings of over

$200,000 annually.

"In fact, viewing of the Kentucky Derby grows at each successive income

level, a rarity in sports television matched only by obviously upscale events

such as The Masters," Mulvihill said. "I believe that the scarcity of the

affluent demographic makes this a key attribute for the future of racing as a

television property.

"We find that the Kentucky Derby attracts over twice as many of these

high-income viewers as any nighttime entertainment show. That is a powerful

marketing story that I suspect has gone largely unnoticed by American

advertisers," he said.

Mulvihill identified four significant areas of "strength and opportunity" for

horse racing in American media, adding that "hopefully some, if not all, of

these apply to most territories worldwide." Those areas are:

--Racing delivers the highest income viewers, difficult for marketers to

reach, "and that holds great value;"

--The sport offers live programming in an increasingly on-demand environment,

delivering an audience to advertisers in real time;

--There is a remarkable volume of racing events, with 111 Grade 1 races in

the United States and 457 graded stakes "and most of these are either not

televised nationally or their exposure is limited to 24-hour racing networks

rather than general interest sports networks where they might be exposed to new

potential fans and bettors." To Fox, "this presents a tantalizing opportunity.

We are in the business of presenting live events of the highest quality, and

horse racing has them in abundance." And lastly,

--A powerful schedule of international events that is largely unseen today in

the United States. "It is illogical to me that world-class spectacles like the

Prix de l'Arc de Triomphe, the Melbourne Cup, the Japan Cup and the Royal Ascot

meeting are so difficult to find on American television. That has to change.

These are precisely the events that give us the best opportunity to present

horse racing as a glamorous, cosmopolitan activity to exactly the kind of

high-income consumers that can drive the future value of the sport," Mulvihill

concluded.

Also during the discussion on marketing, France Galop marketing executive

Jean Christophe Giletta reported that his organization is developing a French

series of Group 1 races at five racecourses that will be heavily promoted. Brand

development will be key with this new series, details of which have not been

revealed.

"It is very important to rely on a brand and create a preference," Giletta

said. "You don't go to the supermarket to buy water -- you go to buy Evian or

Perrier."

Racing should be presented as a premium event, with strong promotions telling

stories, which the new racing series will deliver within the context of a brand

strategy.

Meanwhile, in a review of economic trends, Andrew Chesser recited figures

showing that over the past five years, the total number of stallions covering

mares has declined by about 11 percent worldwide, the number of foals born has

decreased about 14 percent and the number of mares bred has fallen by 27

percent. Yet Chesser, who serves as IFHA deputy secretary general and also is

customer service coordinator for The Jockey Club, said the number of races run

globally has remained relatively steady.

Prize money has increased in the last few years, with the total worldwide in

2012 surpassing 3 billion for the first time since the IFHA began keeping this

statistic in 2005.  Wagering worldwide rose to over 95 billion, an increase

of about 3.4 percent from 2011 to 2012 (with growth determined at comparable

inflation rates). The top six nations in betting -- Japan, Australia, France,

Hong Kong, Great Britain and the United States, in descending order -- produced

a little over 80 percent of the total.

Irish trainer, owner and breeder Jim Bolger accepted the first Longines and

International Federation of Horseracing Authorities International Award of Merit

during the conference, saying he was "overwhelmed" by the honor.

"I had no idea I would ever win an award as prestigious as this, and I am

very glad it covered all the aspects of my career," said Bolger, 71, who was

accompanied by his wife, Jackie. "I accept this on behalf of Ireland as well.

It's great for such a small country to be so influential in the global world of

Thoroughbred racing."

In announcing the award, Romanet pointed out that Bolger keeps about 80

broodmares at his Redmondstown Stud and has about 100 horses in training. He has

trained 22 Group 1 winners that have won 40 Group 1 races to date, including

this year's Irish Derby winner Trading Leather, which he bred in addition to

breeding both that colt's sire, Teofilo, and dam, the Sinndar mare Night Visit.

Trading Leather is raced by Jackie Bolger.

When asked how he manages so many horses, Bolger smiled.

"I don't really do much else, so it's a full-time day and night job. I have

very good staff and I have to give them great credit for all I have achieved,

and my family too. I have great family back-up from my wife Jackie, my two

daughters and my 102 staff. And, of course, from people in racing in general in

Ireland."

Bolger identified American-bred St. Jovite, who was campaigned by breeder

Virginia Kraft Payson, as the most talented horse he has handled.

"He demolished a top-class field in the Irish Derby, including an Epsom Derby

winner (Dr Devious), and took 10 seconds off the track record and he still holds

that track record today. He was an absolutely fabulous horse. Unfortunately, he

only operated properly going right-handed and on top of the ground and he got

those conditions only once more after that, winning the King George VI and Queen

Elizabeth Stakes in a canter."

Bolger also helped establish the reputation of Galileo as a sire, breeding

and racing his champion son Teofilo from the stallion's second crop. Bolger said

he liked Galileo from the first time he saw him.

"I was very impressed with his very first run at Leopardstown as a maiden.

And I would be frequently talking with (jockey) Michael Kinane and I asked him

his impression of the horse and up to that time, he regarded him as the best

horse he had ridden. Of course the dam was to produce Sea the Stars after that

so he may well have changed his mind from a racing point of view. But I doubt if

there would be a better sire (than Galileo) for a long, long time.

"I couldn't wait for him to go to stud and I was hoping he wouldn't race as a

four-year-old. I think I was the sole believer after his four-year-old year but

I had great faith in him," he said.

Bolger also has trained Galileo's champion son, New Approach, New Approach's

champion son, Dawn Approach, as well as Galileo's multiple Group 1-winning

daughter, Lush Lashes (GB).

Prior to giving the award, Romanet pointed out that Bolger also has an

incredible record as an educator of racing professionals, including Irish

champion trainers Aidan O'Brien and Willie Mullins. In a special video prepared

for the occasion, Coolmore's John Magnier praised Bolger for his efforts both

within and outside racing to help people in need.

Former Keeneland Association President Nick Nicholson called on racing

leaders from around the globe to create more marquee events and to work

harmoniously to promote the sport in concert as he delivered the keynote speech.

Nicholson cautioned that in an increasingly competitive gaming and entertainment

world, racing has lost the advantages it once held and that sports fans in

general are more discerning than ever -- factors that are difficult at best to

surmount.

"The challenges faced by today's racing executives are more complex and

demanding than those of previous generations," Nicholson said. "We must be

honest with ourselves: we can't continue doing exactly what we have done for

years and survive, much less prosper, in the modern competitive entertainment

and sports environment that young fans have at their disposal. We must adapt to

our new reality and this new environment quickly."

Marquee events, with top-level runners and enticing social activities,

provide the most effective way to draw new fans and "that same excitement is not

at the average weekly race card.

"The marquee events serve as an entrance way to introduce people to racing

and we must provide them with a product and experience that will convert this

one day experience to become a routine and important part of their ongoing

sports and entertainment life," Nicholson said.

Before people embrace racing, the sport must prove worthy in many regards,

including providing a reliably secure wagering system, offering detailed and

valid statistics and ensuring the safety of horses and riders. Integrity in

these areas will provide the foundation on which the sport can grow and thrive.

"The big racing days can provide an entrance way, and if (fans) like what

they see, there should be no reason that racing cannot turn the casual one-time

participant into a true racing fan. We must do our part with competent

administration, modern facilities and exciting experiences, and I have no doubt

we can do that," Nicholson said.

Despite some vast differences in regulations and governance, racing

authorities must build bridges between their jurisdictions and find avenues of

agreement to mutually learn and devise new methods of promotion so that "this

very special way of life" can be sustained through future generations, he

concluded.

"I am convinced the ties that bind us together are much greater than those

that separate us," Nicholson said. "My heartfelt wish for this special industry

is that you may always find a way to come together -- through mutual respect --

and lead this great sport to a bright and successful future."